How the Proposed Basel Guidelines on Rating-agency Assessments Would Affect Developing Countries PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download How the Proposed Basel Guidelines on Rating-agency Assessments Would Affect Developing Countries PDF full book. Access full book title How the Proposed Basel Guidelines on Rating-agency Assessments Would Affect Developing Countries by Giovanni Ferri. Download full books in PDF and EPUB format.
Author: Giovanni Ferri Publisher: World Bank Publications ISBN: Category : Bank Languages : en Pages : 36
Book Description
The Basel Committee has proposed linking capital asset requirements for banks to the banks' private sector ratings. Doing so would reduce the capital requirements for banks that lend prudently in high-income countries; the same incentives would not apply in developing countries.
Author: Giovanni Ferri Publisher: World Bank Publications ISBN: Category : Bank Languages : en Pages : 36
Book Description
The Basel Committee has proposed linking capital asset requirements for banks to the banks' private sector ratings. Doing so would reduce the capital requirements for banks that lend prudently in high-income countries; the same incentives would not apply in developing countries.
Author: Giovanni Majnoni Publisher: ISBN: Category : Languages : en Pages : 32
Book Description
The Basel Committee has proposed linking capital asset requirements for banks to the banks' private sector ratings. Doing so would reduce the capital requirements for banks that lend prudently in high-income countries; the same incentives would not apply in developing countries. Using historical data on sovereign and individual borrowers, Ferri, Liu, and Majnoni assess the potential impact on non-high-income countries of linking capital asset requirements for banks to private sector ratings, as the Basel Committee has proposed.They show that linking banks' capital asset requirements to external ratings would have undesirable effects for developing countries. First, ratings of banks and corporations in developing countries are less common, so capital asset requirements would be practically insensitive to improvements in the quality of assets - widening the gap between banks of equal financial strength in higher- and lower-income countries.Second, bank and corporate ratings in developing countries (unlike their counterparts in high-income countries) are strongly linked to the sovereign ratings for the country - and appear to be strongly related (asymmetrically) to changes in the sovereign ratings. A sovereign downgrading would bring greater changes in capital allocations than an upgrading, and would call for larger capital requirements at the very time access to capital markets was more difficult.Under the new guidelines, capital requirements in developing countries would thus be exposed to the cyclical swings associated with the revision of sovereign ratings in recent crises.Ultimately, linking banks' capital asset requirements to private sector ratings would reduce the credit available to non-high-income countries and make it more costly, limiting economic activity. Bank capital needs in developing countries would be more volatile than those in high-income countries.These findings suggest that the Basel Committee should reassess the role it proposes assigning to external ratings, to minimize the detrimental impact of the regulatory use of such ratings on developing countries. This paper - a product of the Financial Sector Strategy and Policy Department - is part of a larger effort in the department to study the impact of financial regulation on economic development. The authors may be contacted at [email protected] or [email protected].
Author: Andrew Powell Publisher: ISBN: Category : Languages : en Pages :
Book Description
Despite recently announced delays, Basel II - the new standard for bank capital - is due to be completed this year for implementation in the 13 Basel Committee member countries by the end of 2006. Should the other 170 plus member countries of the World Bank also adopt Basel II? Basel II was not written with developing countries in mind, but that does not necessarily mean that there is nothing in it for developing countries or that it can be ignored. Basels I and II represent a wide Sea of Standards. This paper suggests five alternative island-standards and five navigational tools to help countries choose their preferred island within the sea. It is suggested that for some developing countries the standardized approach will yield little in terms of linking regulatory capital to risk, but that countries may need many years of work to adopt the more advanced internal rating-based approach. The paper then proposes a centralized rating-based approach as a transition measure. The paper also makes proposals regarding a set of largely unresolved cross-border issues.
Author: Publisher: World Bank Publications ISBN: Category : Monopolios Languages : en Pages : 28
Book Description
As developing countries build up their capacity to regulate privatized infrastructure monopolies, cost models are likely to prove increasingly important in determining the efficient cost of providing a service to a certain area or type of customer. But cost models require reliable information, which is often scarce in developing countries. Census data and the location of wire services together may help provide the minimum information a regulator needs to implement a cost proxy model, a promising regulatory tool for assessing the efficient cost of providing a utility service.
Author: Jeffrey Sachs Publisher: Cambridge University Press ISBN: 1009116541 Category : Business & Economics Languages : en Pages : 517
Book Description
The Sustainable Development Report 2021 features the SDG Index and Dashboards, the first and widely used tool to assess country performance on the UN Agenda 2030 and the Sustainable Development Goals. The report analyses and outlines what needs to happen for the Decade of Action and Delivery of the SDGs. In order to build back better following the Covid-19 pandemic, especially low-income countries will need increased fiscal space. The report frames the implementation of the SDGs in terms of six broad transformations. The authors examine country performance on the SDGs for 193 countries using a wide array of indicators, and calculate future trajectories, presenting a number of best practices to achieve the historic Agenda 2030. The views expressed in this report do not reflect the views of any organizations, agency or programme of the United Nations. This title is available as Open Access on Cambridge Core.
Author: Joost Pauwelyn Publisher: Oxford University Press ISBN: 0198852568 Category : Law Languages : en Pages : 545
Book Description
This addition to the 'Law and Global Governance Series' examines participation of stakeholders in treaty-based intergovernmental organizations. Readers are offered a comprehensive account of what has been done to facilitate the participation of previously neglected stakeholders.
Author: Michael Lokshin Publisher: World Bank Publications ISBN: Category : Age Languages : en Pages : 42
Book Description
Economic incentives have a powerful effect on the work behavior of women with children in Kenya. In addition to increasing the future productivity of children, government subsidies of low-cost early childhood development programs would increase the number of mothers who work, thus increasing the incomes of poor households and lifting some families out of poverty. They would also increase older girls' enrollment in school, by releasing them from child care responsibilities.
Author: Thorsten Beck Publisher: World Bank Publications ISBN: Category : Accounting Languages : en Pages : 20
Book Description
To improve on the low level and low efficiency of Brazil's financial intermediation (and hence economic growth), Brazil needs reforms leading to a more efficient judical sector, better enforcement of contracts, stronger rights for creditors, stronger accounting standards and practices, and a legal and regulatory framework that facilitates the exchange of information about borrowers.
Author: Aaditya Mattoo Publisher: World Bank Publications ISBN: Category : Acuerdos comerciales Languages : en Pages : 24
Book Description
If negotiations on trade in services at the World Trade Organization are to advance liberalization beyond levels undertaken unilaterally and lead to more balanced outcomes, reciprocity must play a greater role in negotiations. This may be facilitated by the use of negotiating rules that establish credible links across sectors and modes of delivery.
Author: Giovanni Ferri
Author: Giovanni Ferri
Author: Giovanni Majnoni
Author: Andrew Powell
Author: 
Author: 
Author: Jeffrey Sachs
Author: Joost Pauwelyn
Author: Michael Lokshin
Author: Thorsten Beck
Author: Aaditya Mattoo